Tens of thousands of staff at John Lewis and Waitrose – from checkout assistants to chairman Charlie Mayfield – are to receive a bonus of almost nine weeks’ pay.

The windfall, equivalent to 17 per cent of salary, follows a 16 per cent rise in company profits for 2012 to £410million.

The partnership, effectively owned by its 84,700 staff, saw remarkable growth last year as the recession laid waste its rivals. The triumph is a direct result of a decision to spend millions of pounds boosting the websites of both John Lewis and Waitrose.

Happy days: John Lewis and Waitrose staff received bonuses worth 17 per cent for the year to January 26

Time to celebrate: Waitrose and John Lewis staff at Oxford Street this morning, after learning of this year's bonus bonanza

JohnLewis.com posted a 41 per cent
increase in annual sales in 2012, to just under £1billion. By contrast,
bricks-and-mortar outlets saw a modest 2.6 per cent rise.

A
successful click and collect service, where shoppers purchase online
and collect from one of 234 points in stores, has now been extended to
let customers who buy small items online return them free via one of
5,000 corner shops and petrol stations.

But
a concentration on web sales means savings in other areas, with a
decision to cut the number of managers in department stores by 325 in
the next few years.

The
John Lewis price promise of being ‘Never Knowingly Undersold’ and its
two-year warranties have attracted customers wary of spending in a cost
of living squeeze.

The business’s customer service is also rated highly, thanks to staff who have a stake in its success.

David Cameron has praised the John Lewis ownership model, while the Government is considering replicating it in the public service.

The 17 per cent payout, from a bonus pot of £210.8million, is better than many staff expected. It was cut from 18 per cent of salary to 14 per cent in 2011, after a 4 per cent fall in profits. The money is taxable.

Sophie DeSuze Watson, a Partner from John Lewis Croydon plans to give half of her bonus to her sister for IVF treatment (see below)

John Lewis first paid its bonus in 1920, at 20 per cent of salary. It rose to as much as 24 per cent in some years in the 1970s and 1980s.

Ocado Waitrose supermarket delivery: The group said 1.5million more customers chose to shop online at Waitrose or John Lewis

The lowest payout was 4 per cent of
salary in 1954, and it has been suspended altogether 17 times, as a
result of war or recession.

The group’s total sales jumped 9 per cent to £8.5billion in the year to January 26.

Chairman Mr Mayfield said: ‘This has been a good year for the
partnership with growth in sales and profit above our expectations.

‘Both Waitrose and John Lewis gained market share for what is now the
fourth consecutive year. As a result I am delighted that 84,700 partners
will receive a bonus of 17 per cent.

‘Although the market remains challenging, the partnership has adapted
quickly and successfully and we saw the benefits this year.’

He added that the company has had a good start to 2013, with sales up 10.5 per cent in the first five weeks of the year.